Can I start a company with a foreign national as a co-founder?

Yes, foreign nationals can generally be shareholders and directors of an Indian company, though there are some specific requirements — for instance, an Indian private limited company must have at least one director who is a resident of India (someone who has stayed in India for a specified minimum number of days in the preceding financial year).

Foreign investment into the company (whether by your co-founder personally or through a foreign entity) will also need to comply with foreign exchange and, depending on the sector, foreign direct investment regulations, which specify permitted routes and, for certain sectors, government approval requirements.

Practical matters like opening a bank account, obtaining a Digital Signature Certificate, and completing KYC will also need to factor in your co-founder's foreign national status, which can sometimes take a bit longer to process. Given these additional layers, it's worth consulting a corporate lawyer early in your incorporation process to structure things correctly from the outset.